I need some input on the book I’m writing (more information on that here).
I’m looking for the best, most colorful examples of post-1934 short-side stock manipulations.
As I see it, stock manipulation comes in three general flavors…
- Trade-based: on the short side, this is the essence of abusive, illegal short selling, is the general focus of this blog, and not something I need more examples of. Instead, please consider the following two types.
- Action-based: where the manipulator, usually (but not always) from within the company, takes steps to literally affect the real or perceived value of the company for the purpose of benefiting an existing stock position. There are myriad examples of this sort of thing happening prior to Securities Exchange Act of 1934, but not nearly as many since, and most of those are long-side. If you know of any great examples of short-side, action-based stock manipulation, pleases add them as a comment below.
- Information based: where the manipulator intentionally disseminates incorrect information about a company’s prospects for the purpose of benefiting a stock position. Much of DeepCapture.com is dedicated to exposing examples of this sort of abuse, primarily on the short side. This was also technically outlawed in 1934, but as I suspect we’ve all seen, happens on a grand scale nonetheless. But if you know of any particularly interesting or outrageous examples not yet discussed here, please add them as a comment below.
Please limit your suggestions to cases that went to trial or otherwise experienced some level of fact-finding or other official response.
As always, if you’d rather add your insights privately, my email is firstname.lastname@example.org.